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TRANSPACIFIC Industries Group Ltd (ASX:TPI) has announced it will sell its New Zealand business to a wholly owned subsidiary of the Beijing Capital Group for NZ$950 million (approximately A$880 million).
Beijing Capital Group is one of China's leading state-owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads. It is also one of China's most prominent real estate developers.
In December 2013, the group had total assets and revenues exceeding US$21 billion and US$3.7 billion respectively and employed around 20,000 people across its regional and international businesses.
Completion of the sale is expected to occur by the end of June 2014 which will allow TPI to redeem the Step-up Preference Securities (ASX: TPAPA), refinance its syndicated debt facility and fund future investments with a strong capital base. TPI will also consider the resumption of dividends in the near term.
TPI CEO Robert Boucher says the sale of the New Zealand business gives the company increased financial flexibility.
"We will look to enhance our Australian waste management businesses, capture long term growth opportunities and generate improved shareholder value," he says.
"Transpacific New Zealand is a solid business. Managing Director Tom Nickels and his team have done an excellent job in managing the operations.
"Beijing Capital Group is focused on investing in and developing the New Zealand business. We wish them and the Transpacific New Zealand staff well."
*Please note: Transpacific Industries Group (ASX:TPI) completed a changed of name to Cleanaway Waste Management (ASX:CWY) on July 1, 2016
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